Facebook: risks outweigh possible profit
Since the beginning of 2021, Facebook shares (FB) have risen by more than 18%. This was also facilitated by the good figures for the first quarter of this year. The social network turned out to be one of the few technology companies whose financial report did not disappoint investors, but the potential for further growth in quotations looks limited. The shares are traded at Forward P/E - 26x. Given the dynamics of quotations, enthusiasts may have the opportunity to purchase FB at more attractive prices.
Let's take a closer look at the growth of DAU (Daily Active Users): at the end of the first quarter, the indicator increased by 8% y/y, to $1.88 billion. This happened due to the connection of new users in Asia and the” rest of the World". At the same time, in the United States and Europe, there is stagnation: for example, if in the second quarter of 2020, the DAU in the United States and Canada was 198 million, then in the first quarter of 2021 – 195 million. As already mentioned, residents of these regions are monetized at the highest rate: Americans account for 10% of the total customer base and about 47% of all income.